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3 On Your Side: Mortgage Help

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Apr 2, 2008 4:09 pm US/Eastern

3 On Your Side: Mortgage Help

Reporting
Jim Donovan
PHILADELPHIA (CBS 3) ― Are you worried about the state of the economy? Join the club! Consumer confidence is down, prices are up, and more and more people are facing the prospect of losing their homes than ever before.

Several programs have been put in place to help homeowners avoid foreclosure. 3 On Your Side's Jim Donovan tells us about a new one designed to help more people in these trying times.

This latest offer comes from mortgage company Fannie Mae. Many mortgages are tied to Fannie Mae and this option may be give some homeowners who are behind in their payments a little breathing room.

For months, John Dodds director of the Philadelphia Unemployment Project has been warning that the worst is yet to come when it comes to people losing their homes. "We're worried there is going to be a lot of foreclosures unless steps are taken," Dodds said. "Somehow we've got to get out in front of that and not allow large segments of those to go into foreclosure," he added.

The Fannie Mae program is designed for homeowners who have fallen behind on their mortgage, but who are able to resume payments once their loan is brought up to date. It's called Home Saver Advance.

Fannie Mae will provide loans up to $15,000 to cover principal, interest, taxes, insurance and even some home owner association dues. The money goes directly to your mortgage company. The first six months are interest free and no payment is required on the loan. After six months, you pay the loan back with 5% interest over 15 years.

At first glance, the Home Saver Advance option looks to be a good option for those recently unemployed or have just gotten behind in some payment and aren't able to refinance. It doesn't look to be a solution for those who have an adjustable mortgage that is about to jump up.

RELATED LINKS:
Fannie Mae
Philadelphia Unemployment Project
Acorn Housing

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